Cameron Bagrie: Independent Economist on the division between economists over whether the Reserve Bank should raise the OCR

Economists are divided over how fast the Reserve Bank should raise the Official Cash Rate.  ANZ has already picked three consecutive hikes in July, September, and October, while Westpac says it’s becoming more of a possibility next month, but is more likely in September.   On the hand, Kiwibank believes raising the rate multiple times before the election would be reckless.  Independent Economist Cameron Bagrie told Ryan Bridge there’s a case for raising the OCR in May – a pre-emptive strike against inflation.  He says that if they feel the need to go, they're better off going early as if they leave it later and let inflation get a bit embedded, they’ll have to take the OCR higher to compensate.   LISTEN ABOVE See omnystudio.com/listener for privacy information.